^[(1)
Every Head of Department shall have a list prepared every three months, that is,
on the 1st January, 1st April, 1st July and 1st October
each year, of all Government servants who are due to retire within the next
twelve to fifteen months of that date.

(2) A copy
of every such list shall be supplied to the Accounts Officer concerned not later
than 31st January, 30th April, 31st July or 31st
October, as the case may be, of that year.]

(3) In the cae of a Government
servant retiring for reasons other than by way of superannuation, the Head of Office shall
promptly inform the Accounts Officer concerned, as soon as the fact of such retirement
becomes known to him.

(4) A copy of intimation sent by the
Head of Office to the Accounts Officer under sub-rule (3) shall also be endorsed to the
Directorate of Estates if the Government servant concerned is an allottee of Government
accommodation.

^[57.
The Head of Office shall write to the Directorate of Estates at least one year
before the anticipated date of retirement of the Government servant who was or
is in occupation of a Government accommodation (hereinafter referred to as the
allottee) for issuing a `No demand certificate' in respect of the period
preceding eight months of the retirement of the allottee.]

(1)
Issue of 'No Demand Certificate'. - 1. The existing
procedure for the issue of "No Demand Certificate" by the Directorate of Estates
had been incorporated in Rules 57
and 72
of the CCS (Pension) Rules, 1972. With a view to expediting the issue of `No Demand
Certificate', the question of simplifying and rationalising the existing procedure was
further examined and supplementary instructions were issued. Briefly, the Administrative
Ministries/Departments concerned are required to furnish a list of Government servants in
occupation of Government accommodation, along with applications from the individual, on
the prescribed form, for issue of `No Demand Certificate', to the Directorate of Estates
at least two years before the date of superannuation of the official concerned. Under the
existing orders, the Directorate of Estates in its turn would issue an Advance `No Demand
Certificate' to the Department concerned with a copy endorsed to the individual concerned
eight months before the date of superannuation informing -

(i)

the amount of licence fee due up to that period, i.e., eight
months prior to the date of superannuation ;

(ii)

the monthly rate of recovery of licence fee for the rest of
the service, i.e., eight months ; and

(iii)

the amount of licence fee recoverable for two months (now
four months) period of retention allowed after retirement.

2. On receipt of such an intimation from the Directorate of Estates,
the Department concerned is responsible for the recovery of the amounts as indicated
above. Thereafter, it is at liberty to finalise the pension account of the individual
without any further certificate from the Directorate of Estates. After permissible period
of retention, i.e., from the date of cancellation, the occupant is to be dealt with by the
Directorate of Estates as if it were a private party. Thus, the Department concerned is no
longer required to correspond with the Directorate of Estates about that individual for
the period beyond the cancellation of allotment. This procedure has been brought to the
notice of all Ministries/Departments, etc., again by the Directorate of Estates vide their
OM No. 3/28/82-(P-I)/RCS, dated the 4th May, 1983 (copy reproduced below).

3. From the position explained above, it is very clear that after
ensuring recoveries mentioned in para. 1, the Departments are at liberty to finalise the
accounts of the retired Government servants. Besides, if the Directorate of Estates, for
certain reasons, fails to inform the Department concerned about the dues eight months
prior to his date of retirement, they are free to assume that nothing is due on account of
rental dues in the books of the Directorate of Estates and they can finalise the pension
papers of the individual concerned without waiting for any certificate from the
Directorate of Estates, provided the Department had forwarded the application for No
Demand Certificate two years in advance and had obtained an acknowledgement for the same.

4. It has been brought to the notice of this Department that most of
the Ministries and their attached and subordinate offices do not adhere to these
instructions and insist for a final "No Demand Certificate" from the Directorate
of Estates to enable the retired Government servant to get back his withheld amount of the
Retirement Gratuity. Scores of such retired Government servants visit the Directorate of
Estates for this purpose which entails unavoidable work all round apart from harassment to
the Government servants by their own Departments. It is, therefore, impressed on all the
Ministries/Departments that the existing prescribed procedure should be strictly and
scrupulously followed by all concerned so that the retiring and retired Government
servants do not experience any hardship due to delays in the settlement of their pension
cases.

1. Attention is invited to the Directorate of Estates' Office Memo.
No. 3/3/76-RCS, dated 23-6-1977, followed by another O.M. No. 3/28/81-RCS, dated
23-8-1982, according to which the Department concerned are required to furnish a list of
Government servants along with application from the individuals, on the prescribed form
for issue of No Demand Certificate to the Directorate of Estates at least 2 years before
the date of superannuation of the officials in occupation of General Pool Accommodation.

2. The Directorate of Estates in its turn would issue an Advance No
Demand Certificate to the Department concerned with a copy endorsed to the individual
concerned 8 months before the date of superannuation informing the amount of licence fee
due up to that period, i.e., 8 months prior to the date of superannuation besides the rate
of monthly recovery of licence fee for the rate of the service, i.e., 8 months. The amount
of licence fee recoverable for 2 (now 4) months period of retention allowed after
retirement, is also to be intimated simultaneously. Thereafter the Departments are at
liberty to finalise the pension account of the individual. The Department has to ensure
full recovery of the amount shown as due in the advance "No Demand Certificate".
At the time of sanctioning pension, PPO No. and the particulars of Treasury/Bank on which
it is issued, is to be intimated to the Directorate of Estates along with the permanent
residential address of the retiring officer. After the permissible period of retention,
i.e., from the date of cancellation, the occupant is to be dealt with by the Directorate
as if it were a private party. The Departments concerned are no longer required to
correspond with Directorate of Estates about that individual for the period beyond
the cancellation of allotment. However, it is seen that at the time of releasing the
withheld amount of DCRG, many of the offices insist for another certificate from the
Directorate of Estates on this account. As explained above, no such further certificate is
normally required to be issued by the Directorate of Estates.

3. All the Ministries/Departments are requested to adhere to the
time-schedule of informing the Directorate of Estates the date of superannuation of an
allottee two years before his retirement and after the receipt of advance Final Demand
Certificate issued by this Directorate, they should not normally ask for any further
certificate on this account.

(2) Issue
of `No Demand Certificate' in case of Interpool exchange of Government accommodation.
- 1. Interpool exchange of the General Pool accommodation with
Departmental or other Autonomous Bodies accommodation is occasionally made in certain
cases so that an Officer occupying a particular quarter does not have to shift
unnecessarily at a particular station. In such cases, the Department concerned is required
to deposit the licence fee collected from the allottee with the Directorate of Estates.
Sometimes the Department fails to deposit the licence fee even though they have actually
recovered the same from the officer occupying the accommodation in question. The amount
remains in arrears in some cases even after termination of interpool exchange. Meanwhile
if the allottee retires, he is not issued the `No Demand Certificate' on the ground that
some dues for the period of exchange have not been settled, not withstanding the fact that
the allottee had paid the licence fee to the department. As a result the allottee suffers,
because part of his gratuity is withheld pending issue of `No Demand Certificate'.

2. After due consideration it has been decided that the `No Demand
Certificate' should not be withheld in respect of retired officer merely on the ground
that some adjustment of dues between two organisations is pending for the period the
quarter remained exchanged with departmental pool, provided there are no other dues to be
recovered from the officer for other period and it has also been certified by the
department concerned that the officer had actually paid the licence fee to the department,
where he remained posted during the period the quarter was exchanged with department pool.

(3) Directorate
of Estates to be informed forthwith regarding retirement/death of occupants of quarters.
- As per present practice, all the Ministries/Departments are required to
intimate this Directorate about the transfer/retirement/death of a Government servant
working under their administrative control to enable this Directorate to cancel the
quarter, if any, in the name of that Government servant. However, it has been observed
that this practice is not being followed scrupulously by most of the
Ministries/Departments with the result that the Government servants who are transferred
out of Delhi or retired, continue to retain Government accommodation unauthorisedly
for considerably long periods. The Comptroller and Auditor-General in his report ending
31st March, 1989, have taken a serious view of the situation and have pointed out 734 such
cases where there was delay in cancellation of quarters due to retirement/transfer/death
of the Government servant.

It is, therefore, impressed upon all the Ministries/Departments once
again to intimate this Directorate about the transfer of Government servants from one
office to another or to outstation and about retirement or death of the Government servant
immediately on the occurrence of such events to enable this Directorate to take further
necessary action in respect of Government accommodation, if any, allotted to that
Government servant.

Every Head of Office shall undertake the work of
preparation of pension papers in Form 7
^[one year]
before the date on which a Government servant is due to retire on superannuation, or
on the date on which he proceeds on leave preparatory to retirement, whichever is earlier.

^[59.
Stages for the completion of pension papers on superannuation. – The Head of
Office shall divide the period of preparatory work of one year referred to in
rule 58
in the following three stages, namely:–

(a) First
Stage. – Verification of service. –

(i)
The Head of Office shall go through the service book of the
Government servant and satisfy himself as to whether the certificates of
verification for the service
subsequent to the service verified under rule 32 are recorded therein.

(ii)In respect of the unverified portion or portions of service, he shall
verify the portion or portions of such service, as the case may be, based on pay
bills, acquittance rolls or other relevant records such as last pay certificate,
pay slip for month of April which shows verification of service for the previous
financial year and record necessary certificates in the service book.

(iii)If the service for any period is not capable of being verified in the
manner specified in sub-clause (i) and sub-clause (ii), that period of service
having been rendered by the Government servant in another office or Department,
the Head of Office under which the Government servant is at present serving
shall refer the said period of service to the Head of Office in which the
Government servant is shown to have served during that period for the purpose of
verification.

(iv)On receipt of communication referred to in sub-clause (iii), the Head of
Office in that office or Department shall verify the portion or portions of such
service, in the manner as specified in sub-clause (ii), and send necessary
certificates to the referring Head of Office within two months from the date of
receipt of such a reference:

Provided
that in case a period of service is incapable of being verified, it shall be
brought to the notice of the referring Head of Office simultaneously.

(v)If no response is received within the time referred to in the preceding
sub-clause, such period or periods shall be deemed to qualify for pension.

(vi)If at any time thereafter, it is found that the Head of Office and other
concerned authorities had failed to communicate any non-qualifying period of
service, the Secretary of the administrative Ministry or Department shall fix
responsibility for such non-communication.

(viii)If any portion of service rendered by a Government servant is not capable
of being verified in the manner specified in sub-clause (i) or sub-clause (ii)
or sub-clause (iii) or sub-clause (iv) or sub-clause (v), the Government
servant shall be asked to file a written statement on plain paper within a
month, stating that he had in fact rendered service for that period, and shall,
at the foot of the statement, make and subscribe to a declaration as to the
truth of that statement.

(ix)The Head of Office shall, after taking into consideration the facts in
the written statement referred to in sub-clause (viii) admit that portion of
service as having been rendered for the purpose of calculating the pension of
that Government servant.

(x)If a Government servant is found to have given any incorrect information
willfully, which makes him or her entitled to any benefits which he or she is
not otherwise entitled to, it shall be construed as a grave misconduct.

(b) Second
Stage. - Making good omission in the service book. –

(i)
The Head of Office while scrutinising the certificates of
verification of service, shall also identify if there are any other omissions,
imperfections or deficiencies which have a direct bearing on the determination
of emoluments and the service qualifying for pension.

(ii)
Every effort shall be made to complete the verification of service,
as specified in clause (a) and to make good the omissions, imperfections or
deficiencies referred to in sub-clause (i).

(iii) Any omission, imperfection or deficiency which is incapable of
being made good and the periods of service about which the Government servant
has submitted no statement and the portion of service shown as unverified in the
service book which it has not been possible to verify in accordance with the
procedure laid down in clause (a) shall be ignored and service qualifying for
pension shall be determined on the basis of the entries in the service book.

(iv) For the purpose of calculation of average emoluments, the Head of
Office shall verify from the service book the correctness of the emoluments
drawn or to be drawn during the last ten months of service.

(v) In order to ensure that the emoluments during the last ten months
of service have been correctly shown in the service book, the Head of Office may
verify the correctness of emoluments only for the period of twenty-four months
preceding the date of retirement of a Government servant, and not for any period
prior to that date.

(c) Third
Stage. - As soon as the second stage is completed, but not later than eight
months prior to the date of retirement of the Government servant, the Head of
Office shall –

(i)
furnish to the retiring Government servant a certificate regarding
the length of qualifying service proposed to be admitted for the purpose of
pension and gratuity and also the emoluments and the average emoluments proposed
to be reckoned for retirement gratuity and pension.

(ii) direct the retiring Government servant to furnish to the Head of
Office the reasons for non-acceptance, supported by the relevant documents in
support of his claim within two months if the certified service and emoluments
as indicated by the Head of Office are not acceptable to him.

(iii) forward to the retiring Government servant
Form 5
advising him to submit the same duly completed in all respects so as to reach
the Head of Office not later than six months prior to his date of retirement.]

(a)^[59-A.
A Government servant, retiring for reasons other than superannuation may, submit
Form 5 before such retirement but after the competent authority has approved
such retirement or the retirement has become effective, as the case may be.]

(1)
Staff dealing with pension matters to be trained properly in pension procedures. - The
Study Team has pointed out that staff responsible for processing pension cases were found
to be not fully aware of the urgency of maintaining the time-schedule for obtaining and
processing of pension papers. It was also found that staff dealing with pension had not
undergone any training on the subject. The Ministries/Departments are advised to ensure
that staff dealing with pension matters are trained properly in pension procedures and
they should be sent for in-service training from time to time.

60. Completion
of pension papers.
– ^[In cases under rule 59, the Head of Office shall complete Part I of
Form 7
not later than four months before the date of retirement of a Government servant
and in cases under rule 59-A, the Head of Office shall complete Part I of Form 7
within three months after submission of Form 5 by a Government servant.]

(1) After complying with the requirement of
Rules 59 and 60, the Head of Office shall forward to the
Accounts Officer Form 5 and Form 7 duly completed with a covering letter in Form 8 along with service book of the Government
servant duly completed, up-to-date, and any other documents relied upon for the
verification of service.

(2) The Head of Office shall retain a copy of
each of the Forms referred to in sub-rule (1) for his records.

(3) [Omitted]^

(4) ^[The
papers referred to in sub-rule (1) shall be forwarded to the Accounts Officer
not later than four months before the date of superannuation of a Government
servant and in cases other than retirement on superannuation not later than
three months after the date of submission of Form 5.]

(1) Pension
Calculation Sheet to be given to Pensioner. - 1.
Representations have been received from Pensioners' Associations about reforming the
pension payment procedures. One of the suggestions made is that Pension Payment Order
should contain a Pension Calculation Sheet detailing therein the period of service
rendered, date and rate of last increment with scale of pay, etc.

2. The matter has been examined in consultation with the
Comptroller and Auditor-General of India and the Controller-General of Accounts and it is
felt that there is need for the pensioner to be supplied with details leading to the
computation of pension. With this end in view it is proposed that the Head of Office
preparing the pension case of a Central Government employee should prepare in triplicate a
certified calculation sheet, as in the pro forma attached (see revised format under Form 7), certify the sheet at the bottom and pass it on
to the concerned PAO/Accounts Officer along with the pension case.

3. The PAO/Accounts Officer, while issuing the
pensionary authorization, countersign the calculation sheet as certified by the Head of
Office, retain one copy (out of the three received by him from the Head of Office) and
forward one copy as countersigned by him to the pensioner, along with the intimation of
his having sent the pension payment authority PPO to the AG/PAO, etc. The third copy
of the certified calculation sheet as countersigned by the PAO/Accounts Officer of
the Ministry/Department concerned, and the latter would record those calculation sheets as
certified by the Head of Office and countersigned by the PAO/AO, in a guard file with a
proper index.

4. Ministry of Agriculture, etc., are requested kindly
to furnish the calculation sheet in the revised format to all pensioners simultaneously
with the issue of the pension payment order by the respective Pay and Accounts Officers.

5. Formal amendments to the CCS (Pension) Rules, 1972,
will be issued separately.

The employee seeking permanent absorption is not entitled to
family pension benefit from the Public Sector Undertakings/Autonomous Bodies or under the
Employees' Provident Fund and Miscellaneous Provisions Act.

(b)

Where the employee concerned is governed by the Family
Pension Scheme under the Employees' Provident Fund and Miscellaneous Provisions Act, he
opts to be governed by the Family Pension Scheme of the Central Government after obtaining
exemption from the provision of Employees' Provident Fund and Miscellaneous Provisions Act
from the Regional Provident Fund Commissioner concerned.

For this purpose, the format of the calculation sheet has been
further amplified. A revised format (Form-7) is enclosed (Annexure). This calculation
sheet should be got printed on fairly heavy paper to ensure its durability and entries
therein should as far as possible be typed. In the event of the asborbees becoming
eligible for the benefit of family pension under the Central Government rules, the pension
calculation sheet can be relied upon by the members of the family for claiming family
pension as and when the contingency for the same arises in future.

Ministry of Agriculture, etc., are requested kindly to bring these
revised instructions to the notice of all Heads of Office/Pay and Accounts Offices under
their administrative control. It is also requested that the pension calculation sheets may
be supplied in all past cases of absorption in PSU/Autonomous Bodies (confined to details
regarding entitlement to family pension) where the family pension has not so far already
commenced.

In their application to the persons serving in the Indian Audit
& Accounts Department, these orders issue in consultation with the Comptroller &
Auditor-General of India.

Family Pension at ordinary rate as at (a) above x
2, subject to prescribed minimum and maximum as per Rule 54.

*EXPLANATION : In case of permanent absorption in
Public Sector Undertakings/Autonomous Bodies, whether the retiree opts for pro rata
pension or commutation of 100% pension, the above-mentioned entitlement to family pension
will be subject to the fulfilment of the following conditions, namely :-

(a)

The employee seeking permanent absorption is not entitled to
family pension benefit from the Public Sector Undertakings/Autonomous Bodies or under the
Employees' Provident Fund and Miscellaneous Provisions Act, and

(b)

Where the employee concerned is governed by the Family
Pension Scheme under the Employees' Provident Fund and Miscellaneous Provisions Act, he
opts to be governed by the Family Pension Scheme of the Central Government after obtaining
exemption from the provision of Employees' Provident Fund and Miscellaneous Provisions Act
from the Regional Provident Fund Commissioner concerned.

If, after the pension papers have been forwarded to the
Accounts Officer, [ ]^ any event occurs
which has a bearing on the amount of pension admissible, the fact shall be promptly
reported to the Accounts Officer by the Head of Office.

^[(1)
The Head of Office shall, after ascertaining and assessing the Government dues
referred to in
rule 71,
furnish the particulars thereof to the Accounts Officerin Form 8.]^

(2) If, after the particulars of Government dues have been intimated
to the Accounts Officer under sub-rule (1), any additional Government dues come to the
notice of the Head of Office, such dues shall be promptly reported to the Accounts
Officer.

^[64.
Provisional pension for reasons other than
Departmental or Judicial proceedings.– (1) Where in spite of following the
procedure laid down in
rule 59,
it is not possible for the Head of Office to forward the pension papers referred
to in
rule 61
to the Accounts Officer within the period specified in sub-rule (4) of that rule
or where the pension papers have been forwarded to the Accounts Officer within
the specified period but the Accounts Officer may have returned the pension
papers to the Head of Office for eliciting further information before issuing
pension payment order and order for the payment of gratuity and the Government
servant is likely to retire before his pension and gratuity or both can be
finally assessed and settled in accordance with the provisions of these rules,
the Head of Office shall rely upon such information as may be available in the
official records, and without delay, determine the amount of provisional pension
and the amount of provisional retirement gratuity.

(2) On
receipt of Form 5, in a case of retirement otherwise than on superannuation, the
Head of Office shall sanction provisional pension and also provisional
retirement gratuity till issue of Pension Payment Order.

(3) Where
the amount of pension and gratuity cannot be determined for reasons other than
the Departmental or Judicial proceedings, the Head of Office shall –

(a) issue
a letter of sanction addressed to the Government servant endorsing a copy
thereof to the Accounts Officer authorising –

(i) 100 per cent of pension as provisional pension for a period not
exceeding six months to be reckoned from the date of retirement of the
Government servant ; and

(ii) 100 per cent of the gratuity as provisional gratuity withholding ten
per cent of gratuity.

(b)
specify in the letter of sanction the amount recoverable from the gratuity under
sub-rule (1) of rule 63 and after issuing the letter of sanction referred to in
clause (a), the Head of Office shall draw –

(i) the amount of provisional pension ; and

(ii) the amount of provisional gratuity after deducting therefrom the amount
specified in sub-clause (ii) of clause (a) and the dues, if any, specified in
rule 71,

in the same manner as pay and allowances of the establishment are drawn by him.

(4) The
amount of provisional pension and gratuity payable under sub-rule (2) or
sub-rule (3) shall, if necessary, be revised on the completion of the detailed
scrutiny of the records.

(5) (a)
The payment of provisional pension shall not continue beyond the period of six
months from the date of retirement of a Government servant or from the date of
submission of Form 5 by the Government servant, whichever is later, and if the
amount of final pension and the amount of final gratuity had been determined by
the Head of Office in consultation with the Accounts Officer before the expiry
of the said period of six months, the Accounts Officer shall -

(i)
issue the pension payment order; and

(ii)
direct the Head of Office to draw and disburse the difference between the final
amount of gratuity and the amount of provisional gratuity paid under sub-clause
(ii) of clause (b) of sub-rule (3) after adjusting the Government dues, if any,
which may have come to notice after the payment of provisional gratuity.

(b) If the
amount of provisional pension disbursed to a Government servant under sub-rule
(3) is, on its final assessment, found to be in excess of the final pension
assessed by the Accounts Officer, it shall be open to the Accounts Officer to
adjust the excess amount of pension out of gratuity withheld under sub-clause
(ii) of clause (a) of sub-rule (3) or recover the excess amount of pension in
instalments by making short payments of the pension payable in future.

(c) (i)
If the amount of provisional gratuity disbursed by the Head of Office under
sub-rule (3) is more than the amount finally assessed, the retired Government
servant shall not be required to refund the excess amount actually disbursed to
him.

(ii) The
Head of Office shall ensure that chances of disbursing the amount of gratuity in
excess of the amount finally assessed are minimized and the officials
responsible for the excess payment shall be accountable for the over-payment.

(6) If
the final amount of pension and gratuity have not been determined by the Head of
Office in consultation with the Accounts Officer within a period of six months
referred to in clause (a) of sub-rule (5), the Accounts Officer shall treat the
provisional pension and gratuity as final and issue pension payment order
immediately on the expiry of the period of six months.

(7) As
soon as the pension payment order has been issued by the Accounts Officer under
clause (a) of sub-rule (5) or sub-rule (6), the Head of Office shall release the
amount of withheld gratuity under sub-clause (ii) of clause (a) of sub-rule (3)
to the retired Government servant after adjusting Government dues which may have
come to notice after the payment of provisional gratuity under sub-clause (ii)
of clause (b) of sub-rule (3).

(8)
If a Government servant is or was an allottee of Government accommodation, the
withheld amount should be paid on receipt of `No Demand Certificate' from the
Directorate of Estates.]^

(1) Issue
of Last Pay Certificate. - The issue of a Last Pay Certificate should not be
insisted upon before the payment of provisional pension. During the period of six months
after retirement which has been provided for various purposes above, it should be possible
for the Head of Office or other office concerned to issue the Last Pay Certificate to a
Government servant. In cases in which the Last Pay Certificate has not been issued by the
time the formal Pension/Gratuity Payment Orders are received (whether this happens prior
to the retirement of the Government servant or after his retirement and after the grant of
a provisional pension), the Gratuity Payment Order will in any case include a provision
for withholding 10% of the gratuity or Rs. 1,000, whichever is less, pending the
production of the Last Pay Certificate.

(2) Adjustment of
dues other than pertaining to Government accommodation. - In respect of other
Government dues steps should be taken to ascertain or assess the outstanding dues when the
processing of pension papers is taken up two years prior to the retirement date. As the
next stage of the actual preparation of pension papers is reached only after a year and
four months, there is ample time for ascertaining all kinds of Government dues. Once that
stage is reached, i.e., eight months before the retirement of the Government servant, any
further probing of records for recoveries due shall cover only a limited period, i.e., not
more than two years before the date of retirement. It should thus be quite possible for
the Head of Office, or the Office which is to issue the Pension Payment Order, as the case
may be, to ascertain or assess all the dues particularly those pertaining to long-term
advances such as house-building or conveyance advances, over-payment of pay and
allowances, and such other dues, prior to the prescribed deadline for the issue of the
Pension payment/ Gratuity payment orders or the Provisional pension/Gratuity order. The
pension papers should clearly indicate the total amount of outstanding dues which should
be recovered out of the retirement gratuity before authority for the payment of gratuity
(whether final or provisional) is issued ; and if, after the pension papers have been
transmitted to the office responsible for issuing the Pension Payment Order, additional
recoveries to be made from the gratuity come to notice, the fact shall be promptly
reported to that office. In a case where no major recoveries are due, but 10% of the
gratuity or Rs. 1,000 has been withheld because there might be unassessed
Government dues, or because gratuity has been provisionally paid or because last pay
certificate has not been received, the with held amount automatically become payable
on the expiry of the six months after retirement. The Head of Office (or the office
issuing the pension and gratuity payment orders) shall indicate in the orders granting a
provisional gratuity (or the final Gratuity Payment Order) itself the amount of gratuity
withheld and add further that the withheld amount shall be released by the officer
disbursing the pension without further instructions on the expiry of the period of six
months from the date of retirement, unless instructions for the recovery of a specified
sum or sums from the withheld amount are issued within the aforesaid period.

(3)
Provisional pension to be paid by Head of Office in the absence of intimation from
Accounts Officer. - 1. The CCS (Pension) Rules, 1972 and
the corresponding rules applicable to All India Services Officers, Armed Forces personnel
and Railway employees provide for advance action to be taken by the Heads of Offices and
the Audit/Accounts Officers to ensure that the amount of pension and gratuity due to a
retired Government employee is assessed well in time and the Pension Payment Order issued
not later than one month in advance of the date of retirement. In cases where pension and
gratuity cannot be settled as contemplated above, the Rules provide for the payment of
provisional pension and provisional gratuity [e.g., Rule 64
of the CCS (Pension) Rules, 1972]. If the Head of Office is of the opinion that the
Government servant is likely to retire before his pension or gratuity or both can be
finally assessed and settled in accordance with the relevant rules, he shall take
expeditious steps to sanction up to 100 % of pension as provisional pension and up to 100
% of gratuity as provisional gratuity, in accordance with the rules.

2. Representations have been made to the Ministry of
Personnel, Public Grievances and Pension that provisional pension and provisional gratuity
are not being sanctioned by the Heads of Offices as provided for in the rules. This is
causing a great deal of avoidable hardship to retiring employees.

3. Government have taken a serious view of these
complaints that the provisions of the statutory rules are not being observed. Heads of
Offices are advised to ensure that there is no occasion for complaints in future from the
retiring employees and to follow the prescribed procedure in letter and spirit.
Accountability in this regard will rest with the Head of the Office concerned.

4. If any Central Government employee, on retirement, is
not sanctioned provisional pension and provisional gratuity, pending a final determination
of his/her pension and issue of the Pension Payment Order, he/she may send a complaint to
the Department of Pension and Pensioners' Welfare for taking immediate action. The
Government would like to ensure that retiring employees should on their retirement
normally receive the final sanction of pensionary benefits. If delay in issuing a final
Pension Payment Order is unavoidable, at least the benefits of provisional pension and
provisional gratuity should be allowed as prescribed in the rules.

5. These instructions do no apply to cases falling under
Rule 9 of
the CCS (Pension) Rules, 1972 and corresponding provisions in the rules applicable to All
India Services Officers, Armed Forces Personnel and Railway employees, etc.

(4) Head
of Office should ensure that retiring person gets his provisional pension in time. - Rule 64 stipulates that Head of Office is empowered to
sanction provisional pension and gratuity for a period of six months to a retiring
employee, if he is of the opinion that the Government servant is likely to retire before
his pension and gratuity or both can be finally assessed. The Study Team has observed that
this option has not been exercised at all in many cases and the retiring person could not
get his pension in time due to one or the other objection. In this connection, attention
is also invited to Decision (3) above, whereby Heads of Departments/Offices were made
accountable for strict compliance of Government orders for issuing authorization of
Pension and Gratuity, provisional or final, at the date of retirement on superannuation.

(5)Clarification regarding non
applicability of Rule 64 to the case of voluntary/invalid/compulsory retire.

"From a reading of the Rule 64 with Rules
58 and 59 of the CCS
(Pension) Rules, 1972, it is clear that Rule 64only
deals with the cases of superannuation pension. Therefore, pension cases of voluntary
retirement (Rule
48), invalid retirement (Rule 38) and
compulsory retirement (Rule 40)
are not covered by Rule 64 of the Pension Rules."

^[(1)
(a) On receipt of pension papers referred to in
rule 61,
the Accounts Officer shall apply the requisite checks, record the account
enfacement in Part II of
Form 7
and assess the amount of
pension, family pension and gratuity and issue the pension payment order not
later than one month in advance of the date of the retirement of a Government
servant on attaining the age of superannuation.

(b) In
the cases of retirement otherwise than on attaining the age of superannuation,
the Accounts Officer shall apply the requisite checks, complete Part II of
Form 7,
assess the amount of pension, family pension and gratuity, assess dues and issue
the pension payment order within three months of the date of receipt of pension
papers from the Head of Office.

(c) The
Accounts Officer shall indicate in the Pension Payment Order, the name of the
spouse of the Government servant, if alive, as family pensioner.

(d) The
Accounts Officer shall also indicate in the Pension Payment Order, the names of
the
permanently disabled child or children and dependent parents and disabled
siblings as family pensioners if there is no other member of family to whom
family pension may become payable before such disabled child or children or
dependent parents or disabled siblings.

(e) On
receipt of a written communication from the Head of Office on an application
from an existing pensioner or family pensioner, the Accounts Officer shall also
indicate in the Pension Payment Order, the names of the permanently disabled
child or children and dependent parents and disabled siblings as family
pensioners if there is no other member of family to whom family pension may
become payable before such disabled child or children or dependent parents or
disabled siblings.

(f)
The Pension Disbursing Authority shall authorise family pension to the members
of family referred to in clause (c), (d) or (e) in accordance with the
provisions of rule 81 in the order indicated in rule 54.]

(2) The amount of gratuity as determined by the Accounts
Officer under Clause (a) of sub-rule (1) shall be intimated to the Head of Office with the
remarks that the amount of the gratuity may be drawn and disbursed by the Head of Office
to the retired Government servant after adjusting the Government dues, if any, referred to
in Rule 71.

(3) The amount of gratuity withheld under sub-rule (5)
of Rule
72 shall be adjusted by the Head of Office against the outstanding licence fee
intimated by the Directorate of Estates and the balance, if any, refunded to the retired
Government servant.

Attention in this connection is invited to Clause (d)
of para. 1.12.1 of Civil Accounts Manual according to which payment by bank drafts to
outstation payees by Pay and Accounts Offices is permissible in cases, inter alia, of
individuals. The term `individuals' will cover cases or payment for retirement benefits to
retirees, which are to be routed through the DDO [i.e., payments other than those of
monthly pension).

The Pay and Accounts Offices can, therefore, arrange
payment of retirement benefits (other than payments of monthly pension) to retired
Government servants where the concerned DDOs are situated at a station different from the
one where the concerned Pay and Accounts Office is located and also to such other retired
employees who stay after retirement at a station other than that of their DDO/PAO.

(2)
Retirement benefits up to Rs. 10,000 can be paid through uncrossed cheque/demand draft.
- According to paragraph 2 of O.M. No. G.19011/1/77-MF/CGA/5035, dated the 29th
March, 1979 (not mentioned), payment of Retirement/Death Gratuity, withheld amount of
Retirement/Death Gratuity will be made by cheque/demand draft to be drawn in favour of the
pensioner. Such cheques/demand drafts being usually in excess of Rs. 250 are
requested to be crossed and marked "Account Payee" in accordance with para.
1.8.1 of the Civil Accounts Manual.

It has been represented that most of the staff of
industrial organizations like Government of India Mints, etc., are not having bank
accounts. They consequently face difficulty in encashing the crossed cheque/demand draft.
Keeping in view the hardship being faced by staff having no bank accounts, it has been
decided that in cases where a retiring employee makes a specific request in writing for
not crossing the cheque/demand draft in the above form, the amount of retirement
gratuity/withheld amount of retirement gratuity, which does not exceed Rs. 10,000
may be paid by an "Open cheque" instead of by crossed and marked "Account
Payee" cheque/draft, subject to the condition that the payment will be made only to
the payee on identification, or to a person holding letter of authority from the payee
whose signatures must be verified and after identifying the messenger as laid down in
para. 1.8.1 of the Civil Accounts Manual.

In the case of death of a Government servant while in
service or after retirement, but before receiving amount of retirement/death gratuity, the
payment thereof, to the legal heir(s) will, however, invariably be made by crossed
cheque/demand draft marked "Account payee" drawn in favor of the payee(s).

It has been decided that Identity Cards will be
issued by various Ministries/Departments/offices to its retired/retiring employees and the
expenditure on providing a laminated Identity Card will be borne by the pensioner. This
Department has devised a format in which Identity Cards are to be issued to pensioners (specimen
enclosed). It will be the responsibility of the concerned Ministry/Department to work
out the expenditure that may be involved in issuing a laminated Identity Card to pensioner
and the card may be issued at the request of the pensioner on cost recovery basis.

3. Ministry of Agriculture, etc., are requested to take
urgent necessary action in this regard.

If the provisional pension or gratuity or
both sanctioned under sub-rule (4) of Rule 64, is
desired to be paid by the pensioner through money order or bank draft, the same shall be
remitted to him through money order or bank draft at his cost :

Provided that in the case of any pensioner who has been
authorized payment of provisional pension 1{^[not exceeding three
thousand five hundred rupees]
per mensem exclusive of the amount of relief on pension} that amount shall, at the request
of the pensioner, be remitted to him by money order at Government expense.

(1) In the case of Government servant who retires while
on deputation to another Central Government Department, action to authorize pension and
gratuity in accordance with the provisions of this Chapter shall be taken by the Head of
Office of the borrowing Department.

(2) In the case of a Government servant who retires from
service, while on deputation to a State Government or while on foreign service, action to
authorize pension and gratuity in accordance with the provisions of this Chapter shall be
taken by the Head of Office or the Cadre authority which sanctioned deputation to the
State Government or to foreign service.

(1) Acceptance of
evidence regarding payment of pension contribution. -
(a) There are some cases in which, in accordance with the terms of
deputation/`foreign service', it is the responsibility and liability of the Government
servant himself to maintain the continuity of pensionable service by the payment of
pension contributions. In such cases, it will be necessary to ascertain whether the
recoveries have been made, before the period of foreign service is sometimes put to
considerable difficulty because of defective or incomplete record maintenance by the
administrative/accounts offices. In such cases, while he could be reasonably asked to show
that he had indeed made the contributions, the administrative authority should show a
spirit of reasonableness and accommodation in evaluating and accepting such evidence as he
is able to put forward, and not insist rigidly on formal proof with reference to service
or accounts records for the maintenance of which the Government servant is not
responsible.

(b) Where, however, the responsibility for making
pension contributions is that of the borrowing organization and where either some of the
contributions have not been recovered or the records in respect of the recoveries of such
contributions are incomplete, while the authorities concerned should pursue the matter
with the borrowing organization separately for appropriate action, this should have no
bearing on the processing and finalization of pension papers.

^[(1)
In all cases where the payment of gratuity has been authorised later than the
date when its payment becomes due, including the cases of retirement otherwise
than on superannuation, and it is clearly established that the delay in payment
was attributable to administrative reasons or lapses, interest shall be paid at
the rate applicable to General Provident Fund amount in accordance with the
instructions issued from time to time:

Provided that the delay in payment was not caused on account of failure on the
part of the Government servant to comply with the procedure laid down by the
Government for processing his pension papers.]

2(2) Every case of delayed payment of
gratuity shall be considered by the Secretary of the Administrative Ministry or the
Department in respect of its employees and the employees of its attached and subordinate
offices and where the Secretary of the Ministry or the Department is satisfied that the
delay in the payment of gratuity was caused on account of
^[administrative reasons or lapse], the
Secretary of the Ministry or the Department shall sanction payment of interest.

2(3) The Adminsitrative Ministry or the
Department shall issue Presidential sanction for the payment of interest after the
Secretary has sanctioned the payment of interest under sub-rule (2).

2(4) In all cases where the payment of
interest has been sanctioned by the Secretary of the Administrative Ministry or the
Department, such Ministry or the Department shall fix the responsibility and take
disciplinary action against the Government servant or servants who are found responsible
for the delay in the payment of gratuity ^[on
account of administrative lapses].

(5) Deleted by G.I., Dept. of P. & P.W.,
Notification No. 7/10/89-P. & P.W. (F), dated the 28th November, 1991, published as
G.S.R. 677 in the Gazette of India, dated the 7th December, 1991 and takes effect from the
date.

2. Where disciplinary or judicial proceedings against a
Government servant are pending on the date of his retirement, no gratuity is paid until
the conclusion of the proceedings and the issue of the final orders thereon. The gratuity
if allowed to be drawn by the competent authority on the conclusion of the proceedings
will be deemed to have fallen due on the date of issue of orders by the competent
authority.

3. In order to mitigate the hardship to the Government
servants who, on the conclusion of the proceedings are fully exonerated, it has been
decided that the interest on delayed payment of retirement gratuity may also be allowed in
their cases, in accordance with the aforesaid instructions. In other words, in such cases,
the gratuity will be deemed to have fallen due on the date following the date of
retirement for the purpose of payment on interest on delayed payment of gratuity. The
benefit of these instructions will, however, not be available to such of the Government
servants who die during the pendency of judicial/disciplinary proceedings against them and
against whom proceedings are consequently dropped.

4. These orders (paragraph 3) shall take effect from the
10th January, 1983.

2. Certain administrative authorities have drawn
attention to the fact that in cases of retirement on superannuation, the work of
assessment of the demands outstanding against them commences two years in advance whereas
in other cases of retirement, assessment of Government dues, etc., can begin only after
the retirement has been approved by Government and have raised a doubt whether the
provisions of Rule 68 are
also applicable to those who retired otherwise on superannuation and if so whether the
time-limit of three months is to be observed in such cases. The position has been reviewed
in consultation with the Minsitry of Finance. It has been decided that if the
payment of gratuity has been delayed due to administrative lapses for no fault of the
retiring employee in cases of retirement other than superannuation, the payment of
interest may be regulated in the following manner :-

(i)

In case of Government servants against
whom disciplinary/judicial proceedings are pending on the date of retirement and in which
gratuity is withheld till the conclusion of the proceedings :-

(a)

In such cases if the Government servant is exonerated of all
charges and where the gratuity is paid on the conclusion of such proceedings, the payment
of gratuity will be deemed to have fallen due on the date following the date of retirement
vide O.M. No. 1 (4)/Pen. Unit/82, dated the 10th January, 1983 If the payment of
gratuity has been authorized after three months from the date of his retirement interest
may be allowed beyond the period of three months from the date of retirement.

(b)

In cases where the disciplinary/judicial proceedings are
dropped on account of the death of the Government servant during the pendency of
disciplinary/judicial proceedings, the payment of gratuity will be deemed to have fallen
due on the date following the date of death and if the payment of gratuity has been
delayed interest may be allowed for the period of delay beyond three months from the date
of death.

(c)

In cases where the Government servant is not fully exonerated
on the conclusion of disciplinary/judicial proceedings and where the competent authority
decides to allow payment of gratuity, in such cases, the payment of gratuity will be
deemed to have fallen due on the date of issue of orders by the competent authority for
payment of gratuity vide O.M. No. 7 (1) PU/79, dated 11-7-1979 . If the payment of
gratuity is delayed in such cases interest will be payable for the period of delay beyond
three months from the date of issue of the above-mentioned orders by the competent
authority.

(ii)

On retirement other than on superannuation

Such cases of
retirement will be either under clause (j) or clause (k) of FR 56 or Rules 38, 39, 40 ,48 or 48-A of
the CCS (Pension) Rules, 1972. In such cases the pension sanctioning authority does not
get adequate time for processing pension papers, as is available to it in the case of
retirement on superannuation. Instructions have already been issued from time ot time that
the work relating to verification of service should be done on year to year basis and
should not be kept in arrears. Provisions also exist that on completion of 25 years
qualifying service or on one being left with five years service before the date of
retirement, whichever is earlier, the Head of Office should verify the service rendered by
such Government servant and communicate to him the period of qualifying service as
determined vide Rule
32 of the CCS (Pension) Rules, 1972. It is, therefore, expected that even in cases of
retirement other than on superannuation it should not take unduly long time for all Heads
of Offices to prepare pension papers of retiring employees. It has, therefore, been
decided that where the payment of gratuity in such cases is delayed beyond six months from
the date of retirement, interest should be paid for the period of delay beyond six months
from the date of retirement.

(iii)

On death of the Government servant while in service

Such cases may be considered on the same
lines as mentioned in clause (ii) above. Detailed procedure for processing the payment of
death gratuity is explained in Rules 77 to 80 of the CCS (Pension) Rules, 1972. It is felt
that in these cases also it should be possible for the respective offices to process the
payment of death gratuity within a reasonable time. It has, therefore, been decided that
where the payment of death gratuity is delayed beyond six months from the date of death,
interest should be paid for the period of delay beyond six months from the date of death.
If in any case the payment of death gratuity is held up on account of more than one
claimant staking his/her claim to the same, such cases will not automatically qualify for
payment of interest in terms of these orders. These will be examined separately in
consultation with this Department on the merits of each.

(iv)

Cases where the amount of gratuity already paid is enhanced on account of revision
of emoluments or liberalisation in the provisions relating to gratuity from a date prior
to the date of retirement of the Government servant concerned

At present, no interest is paid in such cases. Representations have
been received that the payment of difference in gratuity in such cases is unduly delayed.
It is expected that once the orders relating to revision of emoluments reckoning for
gratuity or liberalisation of rules relating to entitlement of gratuity is issued, the
difference in gratuity should be paid within a reasonable time. Taking into account all
aspects, it has now been decided that if the payment on account of arrears of gratuity is
delayed beyond a period of three months from the date of issue of the orders revising the
emoluments or liberalisation in the rules, interest may be allowed for the delay beyond
the period of three months from the date of issue of the said orders.

(v)

In cases of permanent absorption in PSU/autonomous bodies otherwise than on en
masse transfer on coversion of Government department or a part thereof into PSU/autonomous
body

Payment of interest on delayed payment of gratuity in these cases
may also be decided in the same manner as prescribed in clause (ii) above. If the payment
of gratuity has been delayed beyond six months from the date of permanent absorption the
interest may be allowed for the period of delay beyond six months.

3. As far as retirement on superannuation is concerned, the existing
procedure for grant of interest if the payment of gratuity is delayed due to
administrative reasons/lapses for no fault of the retiring employee will continue to be
applicable. In other words, interest will be allowed for the period of delay beyond three
months from the date of retirement.

4. It has also been observed that there is a general impression among
the administrative authorities that interest is to be paid only after disciplinary action
being taken against the defaulting staff found responsible for the delay in payment of
gratuity is concluded. It is hereby clarified that this impression is not correct. In all
cases in which it is established that the delay in payment of gratuity was attributable to
administrative lapses and for no fault of the retiring employee concerned, the interest
should be paid without waiting for the outcome of the disciplinary proceedings against the
defaulting staff. The disciplinary cases should be proceeded with separately. This may
kindly be borne in mind while regulating cases under paragraphs 2 and 3 above. Wherever
interest becomes payable in terms of these orders, the same shall be allowed up to the end
of the month preceding the month in which gratuity/arrears of gratuity is paid.

5. These orders shall take effect from the date of issue of this OM.
The cases of those Government servants who retired/died while in service before this date
would also be covered if gratuity has not been paid as on the date of issue of this Office
Memorandum and there has been delay in its payments beyond three months/six months, as the
case may be, of the date of their retirement/death but the interest would be payable in
such cases only from the date of the issue of this OM, or three months/six months, as the
case may be, from the date of retirement/death, whichever date is later. Past cases
of retirement otherwise than on superannuation and on death already settled before
the issue of this OM, however, need not be reopened.

(1) (a) In respect of a Government servant referred
to in sub-rule (4) of Rule 9, the
Accounts Officer shall authorize the provisional pension equal to the maximum pension
which would have been admissible on the basis of qualifying service up to the date of
retirement of the Government servant, or if he was under suspension on the date of
retirement up to the date immediately preceding the date on which he was placed under
suspension.

(b) The provisional pension shall be authorized by
the Accounts Officer during the period commencing from the date of retirement up to and
including the date on which, after the conclusion of departmental or judicial proceedings,
final orders are passed by the competent authority.

(c) No gratuity shall be paid to the Government
servant until the conclusion of the departmental or judicial proceedings and issue of
final orders thereon :

1Provided that where departmental proceedings have been
instituted under Rule 16 of the Central Civil Services (Classification, Control and
Appeal) Rules, 1965, for imposing any of the penalties specified in Clauses (i), (ii) and
(iv) of Rule 11 of the said rules, the payment of gratuity shall be authorized to be paid
to the Government servant.

(2) Payment of provisional pension made under sub-rule (1) shall be
adjusted against final retirement benefits sanctioned to such Government servant upon
conclusion of such proceedings but no recovery shall be made where the pension finally
sanctioned is less than the provisional pension or the pension is reduced or withheld
either permanently or for a specified period.

Grant
of cent per cent provisional pension under Rule 69 mandatory even if departmental or
judicial proceedings are continued. - It has come to the notice of Finance
Ministry that some of the administrative authorities are not following Rule
69 of the CCS (Pension) Rules, 1972, which provide that Government servant who has
retired and against whom any departmental or judicial proceedings are instituted or are
continued, shall be paid provisional pension. The payment of provisional pension under
these rules is mandatory. But some adminsitrative authorities appear to be under the
impression that in cases where the departmental proceedings instituted against a
Government servant were for a major penalty and in which ultimately no pension might
become payable on the conclusion of the proceedings after his retirement under Rule 9 of the
CCS (Pension) Rules, 1972, even the provisional pension need not to be sanctioned. This
view is against the letter and spirit of the rule. The Ministry of Home Affairs, etc.,
are, therefore, requested to bring to the notice of administrative authorities under them
the correct position under the rules so that the provisional pension under Rule
69 ibid is not denied to the retired Government servants.

(1) Subject to the provisions of Rules 8 and 9 pension once
authorized after final assessment shall not be revised to the disadvantage of the
Government servant, unless such revision becomes necessary on account of detection of a
clerical error subsequently :

Provided that no revision of pension to the disadvantage of the
pensioner shall be ordered by the Head of Office without the concurrence of the Department
of Personnel and Administrative Reforms if the clerical error is detected after a period
of two years from the date of authorization of pension.

^[(1-A)
The question whether the revision has become necessary on account of a clerical
error or not shall be decided by the administrative Ministry or Department.]

(2) For the purpose of sub-rule (1), the retired Government servant
concerned shall be served with a notice by the Head of Office requiring him to refund the
excess payment of pension within a period of two months from the date of receipt of notice
by him.

(3) In case the Government servant fails to comply with the notice,
the Head of Office shall, by order in writing, direct that such excess payment, shall be
adjusted in instalments by short payments of pension in future, in one or more
instalments, as the Head of Office may direct.

(1) It shall be the duty of the Head of Office to ascertain and
assess Government dues payable by a Government servant due for retirement.

(2) The Government dues as ascertained and assessed by the Head of
Office which remain outstanding till the date of retirement of the Government servant,
shall be adjusted against the amount of the 1[retirement gratuity] becoming
payable.

(3) The expression `Government dues' includes -

(a)

dues pertaining to Government accommodation including arrears
of licence fee * [as well as damages for the occupation of the Government accommodatin
beyond the permissible period after the date of retirement of the allottee )]
if any ;

(b)

dues other than those pertaining to Government accommodation,
namely, balance of house building or conveyance or any other advance, overpayment of pay
and allowances or leave salary and arrears of income tax deductible at source under the
Income Tax Act, 1961 (43 of 1961).

(1) The Directorate of Estates on receipt of intimation from the Head
of Office under sub-rule (1) of Rule
57 regarding the issue of No Demand Certificate shall scrutinize its records and
inform the Head of Office ^[within two months], if
any licence fee was recoverable from him in respect of the period prior to eight months of
his retirement. If no intimation in regard to recovery of outstanding licence fee is
received by the Head of Office by the stipulated date, it shall be presumed that no
licence fee was recoverable from the allottee in respect of the period preceding eight
months of his retirement.

(2) The Head of Office shall ensure that licence fee for the next
eight months, that is up to the date of retirement of the allottee, is recovered every
month from the pay and allowances of the allottee.

(3) Where the Directorate of Estates intimates the amount of licence
fee recoverable in respect of the period mentioned in sub-rule (1), the Head of Office
shall ensure that outstanding licence fee is recovered in instalments from the current pay
and allowances of the allottee and where the entire amount is not recovered from the pay
and allowances, the balance shall be recovered out of the gratuity before its payment is
authorized.

(4) The Directorate of Estates shall also inform the Head of Office
the amount of licence fee for the retention of Government accommodation
for the permissible period ^[ ] beyond the date of retirement of the allottee. The Head of Office shall adjust the amount of that licence fee from the
amount of the gratuity together with the unrecovered licence fee, if any, mentioned in
sub-rule (3).

(5) If in any particular case, it is not possible for the Directorate
of Estates to determine the outstanding licence fee, that Directorate shall inform the
Head of Office that *[ten per cent of the gratuity] may be withheld pending receipt of
further information.

(6) *[The recovery of licence fee (where it is not possible for the
Directorate of Estates to determine the outstaning license fee) as well as damages (for
occupation of the Government accommodation beyond the permissible period after the date of
retirement of allottee) shall be the responsibiity of the Directorate of Estates and the
withheld amount of gratuity under sub-rule (5) above, the retiring Government employee,
who are in occupation of Government acommodation, shall be paid immediately on production
of 'No Demand Certificate' from the Directorate of Estates ater actual vacation of the
Government accommodation;

(7) The Directorate of Estates shall ensure that "No Demand
Certificate" shall be given to the Government employee within a period of fourteen
days from the actual date of vacation of the Government accommodation and the allottee
shall be entitled to payment of interest (at the rate applicable to General Provident Fund
deposit determined from time to time by the Government of Indai) on the excess withheld
amount of gratuity which is required to be refunded, after adjusting the arrears of
license fee and damages, if any, payable by the allottee and the interest shall be payable
by the Directorate of Estate through the concerned Accounts Officer of the Government
Employee from the actual date of vacation of the Government accommodation up to the date
of refund of excess withheld amount of gratuity;

(8) On account of license fee or damages remaining upaid after
adjustment from the withheld amount of gratuity mentioned under sub-rule (5) above, may be
ordered to be recovered by the Directorate of Estates through the concerned Accounts
Officer from the Dearness Relief without the consent of the pensioners and in such cases
no Dearness Relief shall be disbursed until full recovery of such dues has been made.]

NOTE. - For the purpose of this rule, the licence fee shal also
include any other charges payable by the allottee for any damage or loss caused by him to
the accommodation or its fittings.

(1) For the dues other than the dues pertaining to occupation of
Government accommodation as referred to in Clause (b) of sub-rule (3) of Rule 71, the Head of Office shall take
steps to assess the dues ^[one year] before the date on which a Government servant is due to
retire on superannuation ; or on the date on which he proceeds on leave preparatory to
retirement, whichever is earlier.

(2) The assessment of Government dues referred to in sub-rule (1)
shall be completed by the Head of Office eight months prior to the date of the retirement
of the Government servant.

(3) The dues as assessed under sub-rule (2) including those dues
which come to notice subsequently and which remain outstanding till the date of retirement
of the Government servant, shall be adjusted against the amount of 1[retirement
gratuity] becoming payable to the Government servant on his retirement.

(1) Dues
to Municipality and Co-operative Societies not treated as Government dues. - The
arrears of water and electricity are dues of the Municipal Committees, etc., which are
local bodies and are, therefore, not Government dues. Similarly Co-operative
Societes are not Government organizations and any dues to them cannot be treated as `dues
to Government'. No recovery of such dues can be made from the death-cum-retirement
gratuity.

Family pension is like any other pension and recoveries
of dues whether Government or non-Government are not permissible from it without obtaining
the consent of the pensioner.

It has been decided in consultation with the Ministries
of Finance and Law, Justice and Company Affairs, New Delhi, that in case the prematurely
retired official gives a declaration to his disbursing officer for recovery of outstanding
dues of the Co-operative Societies from his DCRG payable to him under the rules, the
same may be deducted in cash from the DCRG of the official and remitted to the
society.

(2)'Government dues' does
not include dues while on deputation. - The term `Government dues' referred
to covers only the dues payable to the Government and does not include dues while on
deputation. In other words, the sum due from the officer to an autonomous organization is
not `Government dues' and so cannot be recovered out of death-cum-retirement gratuity
payable by the Government to the officer, except where the Government servant has given
his consent in writing to such a recovery being made from his gratuity, which has become
payable to him.
[G.I., M.F., O.M. No. F. 14 (9)-E. V/66, dated the 2nd September, 1967.]

(3)Write
off of dues. - In some cases, an amount due from a person has to be written
off on the ground that he/she is no longer in Government service and no recovery is,
therefore, possible. In such cases the orders sanctioning write off should invariably
contain a clause that any sums which are subsequently found due to the person concerned
will be adjusted against the amounts written off.

Refund of amount is normally made only through the office under whom the Government
servant concerned served last, and the Head of the Office concerned should ensure that
over-payments, if any, already written off are set off against such refunds.

(ii)

Gazetted Government servants :

In the case of refund of excess licence fee recovered from a retired Gazetted
Government servant, the Directorate of Estates would obtain a certificate from the Head of
the Department/Office under whom he served last to the effect that no claim due from him
had been written off on account of his being no more in Government service which could be
adjusted against the amount applied for. The Ministry will also maintain appropriate
indexed record to this effect.

(5) Whether
Government dues written off after retirement can be recovered from pay during subsequent
re-employment. - 1. A question has been raised whether the expression
"any sums which are subsequently found due" occurring in Ministry of
Finance's O.M. No. 18(9)-E-II(A)/59 dated 14th May 1960 (See Decision 4
above) cover only the dues relating to the period when the person concerned was
originally in Government service or also covers any dues which may accrue to him as a
result of his subsequent re-employment under Government ; in other words,whether
an amount of overpayment made to a Government servant and written off on the ground that
the person concerned is no longer in Government service, can be recovered from him by
adjustment of the pay and allowances earned by him in the course of his re-employment
under Government. It has been decided that in cases where the amount of over-payment is
written off merely because the person concerned is no longer in Government service and not
on any other ground, as for example, that its recovery would cause hardship to the
individual concerned, the dues which may accrue to him during the period of his
re-employment under Government may be adjusted against the amount written off.

2. In the terms of re-employment of a retired Government
servant, a condition should invariably be inserted to the effect that any amount of
overpayment pertaining to the pre-retirement period including the amount written off on
the ground that he was no longer in Government service would be recoverable by adjustment
of the pay and allowances admissible to him during the period of re-employment.

3. It will be the duty of the office re-employing a
retired Government servant to make an enquiry from the office where he was formerly
employed whether any amount is recoverable in terms of paragraph 1 above. Such an enquiry
will have to be made immediately after a person is re-employed. The final payment of the
re-employed person on the termination of his re-employment should not be made unless the
re-employing office has ensured that no amounts are adjustable in terms of paragraph 1
above.

(6)When a pensioner refuses
to pay Government dues. - The failure or refusal of a pensioner to pay any
amount owed by him to Government cannot be said to be `misconduct' within the meaning of
Article 351 of the CSR [Now Rule
8, CCS (Pension) Rules, 1972]. The possible way of recovering/demanding Government
dues from a retiring officer who refuses to agree in writing, to such dues being recovered
from his pension is either to delay the final sanction of his pension for some time which
will have the desired effect for persuading him to agree to recovery being made thereform
or take recourse to Court of Law.

(7)Only arrears of
licence fee recoverable from pensioner's relief. - The Heads of Offices
should ensure that all Government dues recoverable from retiring Government servants
should be assessed well before retirement and recovered from the salary/retirement
gratuity and that no Government dues other than arrears of Licence Fee can be recovered
from Dearness Relief.

a notification in the Official Gazette in the case of a
Gazetted Government servant, and

(b)

an office order in the case of a non-gazetted Government
servant shall be issued specifying the date of retirement within a week of such date and a
copy of every such notification or office order, as the case may be, shall be forwarded
immediately to the Accounts Officer :

Provided that where a notification in the Official
Gazette or an office order, as the case may be, regarding the grant of leave preparatory
to retirement to a Government servant is issued, a further notification or office order
that the Government servant has actually retired on the expiry of such leave shall not be
necessary unless the leave is curtailed and the retirement is for any reason ante-dated or
postponed.

(1)Statements
required to be maintained for proper mounitoring and reporting system. - In
simplifying the procedure with a view to eliminate delays in the payment of
superannuation pension and retirement gratuity Government have proceeded on the basis that
in spite of every effort imperfections may remain in the records and procedures but that
it would be unfair to a retiring Government servant if he had to suffer because of
the lapses of those responsible for the proper maintenance of service records. The fact
that under the new procedures the presumption will be in favour of the Government servant
if the records are incomplete or deficient in any manner underlines the importance of
ensuring the proper, regular and timely completion of all the service and accounts records
by the offices concerned, so as to minimise the occasion for making such
presumptions. It has, accordingly, been decided that if, in future, service records are
found to be incomplete or imperfect at the time of processing and finalizing pension
cases, those cases will not be delayed but the officials responsible for the maintenance
of the records will be held accountable for any deficiencies, failure or omissions
therein, and action will be initiated against them. The Heads of Departments will ensure
that these directions are complied with.

(2) In order to ensure that the payment of pension
should in all cases commence on the first of the month in which they are due, it has been
decided that the progress of the pension cases should be watched by the Heads of the
Offices and the Heads of the Departments by means of monthly and quarterly statements so
that the various cut-off dates laid down are strictly followed. For proper monitoring and
reporting system the Heads of Offices shall prepare the following statements. (A specimen
each of the Statements is in section FORMS at the end.)

Statement No. 1 : This is monthly
statement and should cover cases of all Government servants due to retire within the
succeeding 8 months and indicate the progress of the pension cases with reference to the
various stages and time-limit prescribed, i.e., whether action was initiated two years in
advance and whether the pension papers are ready for being sent to the Audit Officer
before 6 months of the retirement of the Government servant. The statement should be
submitted by the Head of Office to the next higher officer.

Statement No. 2 : This is monthly
statement having Part I and Part II and the statement should cover the cases of Government
servants who became due for retirement in the previous calendar month. Part I and Part II
of the statement should be submitted by the Head of Office to the next higher officer. The
next higher officer will submit Part II of the statement to the Head of the Department.

Statement No. 3 : This is a quarterly
statement and should cover the cases of those Government servants in whose cases
provisional pension and provisional gratuity was authorized by the Head of Office but the
provisional pension and gratuity had to be made final after the expiry of a period of 6
months. The statement is to be submitted to the Head of the Department.

Statement No. 4 : This is a quarterly
statement and should indicate the particulars of those Government servants where
presumptions have been made in favour of retired Government servant because of
incomplete/improper maintenance of service records. The names of the persons responsible
for improper maintenance of the record of service books and action taken against the
Government servant concerned responsible for lapse should also be indicated. The statement
is to be submitted to the Head of Department.

Statement No. 5 : This is a
half-yearly statement to be submitted by the Head of Department to the Secretary of the
Ministry concerned.

Any case, where payment of pension is delayed, has to
be viewed seriously. The causes of delay in such a case have to be identified and remedial
steps taken so that such delays should not occur in future. This can only be ensured if
the Heads of the Departments will personally scrutinize the statements and issue such
directions as they may consider necessary where payments of pensions have been delayed.
Any deficiency in the procedure should be brought to the notice of this ministry at the
appropriate level so that rules may be amended accordingly.